WAYNE PARRY
Associated Press
ATLANTIC CITY, N.J. (AP) — The owner of the Trump Taj Mahal casino has sent notices to more than 3,100 employees warning it could be shut down in November.
Trump Entertainment Resorts told The Associated Press it filed the notices earlier this week, saying it could close Nov. 13.
The company filed for bankruptcy on Tuesday and threatened to close the Taj Majal if it doesn’t get concessions from its unions.
Local 54 of the Unite-HERE union says Trump Entertainment wants Taj Mahal workers to give up their health insurance and pension plans in return for keeping the company open. But union president Bob McDevitt said that even if the union agreed to those conditions — which it won’t — the savings would amount to $11 million a year, which won’t help a company drowning under more than $285 million worth of debt.
In its bankruptcy filing in Delaware, Trump Entertainment listed assets of no more than $50,000, and liabilities of between $100 million to $500 million.
The company missed its quarterly tax payment due last month, and says it doesn’t have the cash to make an interest payment to lenders due at the end of the month. It also says both its Internet gambling partners have taken steps to end their contracts with Trump Entertainment.
The notices are required under federal law to give at least 60 days’ notice of a company shutdown or large-scale layoff.
The Taj Mahal would be the fifth Atlantic City casino to close this year. The town started the year with 12 casinos.
So far, the Atlantic Club, Showboat and Revel have shuttered, and Trump Plaza is closing Tuesday.
A Florida developer has offered $90 million for Revel at a bankruptcy court auction later this month.
___
Wayne Parry can be reached at http://twitter.com/WayneParryAC
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
